I can't quite recall exactly in what way black level and color space should be configured anymore; I'm also not very familiar with the PS3 settings, unfortunately. But by the names of those settings, I believe you have it all correct. The settings seem to match.
In doubt, I can only recommend that you research and play around with the settings and see if you find the right setup. There's a specific way it has to be, it's not too difficult. The TV must expect the signal that the external device (PS3 in this case) is sending. Pay attention to the details on the darkest and brightest areas of the picture, nothing should be clipped. But blacks should look black, not grey. Must look natural.
It doesn't help that games aren't all designed in the same Full RGB color space, though. You may find yourself having to re-adjust the settings for different games. In any case, always use PC mode with any PC device (consoles are, essentially, PCs), it leaves many settings correctly configured by default.
Regarding Sharpness, I have observed that maximizing the setting (100) in PC mode doesn't really create much visual artifact or distortion. Most games we have for the Xbox are also 720P, so I usually leave the setting around 70 - 75. May depend on the game. It's a matter of finding the right balance between detail and natural/smooth picture quality. Never decrease Sharpness below 50 in PC mode.
Last edited by kkl10; 04-05-2015 at 09:30 AM.